Back to top

Image: Bigstock

Strength Seen in Nine Energy (NINE): Can Its 13.1% Jump Turn into More Strength?

Read MoreHide Full Article

Nine Energy Service (NINE - Free Report) shares ended the last trading session 13.1% higher at $5.61. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 105.8% gain over the past four weeks.

Oil price is still highly favorable for exploration and production operations, paving the way for further rig additions in shale plays. Higher upstream activities will continue to aid demand for oilfield services. Being a leading oilfield services company, offering completion solutions within and outside North America, Nine Energy is well-positioned to continue to gain.

This oilfield services company is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of +131.4%. Revenues are expected to be $154.2 million, up 66% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Nine Energy, the consensus EPS estimate for the quarter has been revised 9.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on NINE going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Nine Energy belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, ProPetro Holding (PUMP - Free Report) , closed the last trading session 3.9% higher at $11.55. Over the past month, PUMP has returned 48.1%.

For ProPetro, the consensus EPS estimate for the upcoming report has changed -24.9% over the past month to $0.27. This represents a change of +640% from what the company reported a year ago. ProPetro currently has a Zacks Rank of #1 (Strong Buy).


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


ProPetro Holding Corp. (PUMP) - free report >>

Nine Energy Service, Inc. (NINE) - free report >>

Published in